By Chiana McLatchie
OPEC has just passed WEBMUN’s first resolution regarding oil production and export Quotas.
The recent drop in oil prices and Member States’ lack of respect towards Quotas pushed OPEC towards setting and enforcing new ones. OPEC hopes the Quota will bring equality amongst Member States and especially help the small players of the oil market like Nigeria, Ecuador, and Kuwait, whose oil supply could run out in an estimated 30 years.
To ensure an efficient and stable oil market with a regular supply of petroleum to consumers, unified and fair policies are required.
In accordance with the Statue, the resolution consists of:
1. All OPEC member countries must produce no more than the set quota.
a) If a member country produces less than the set quota, no consequences shall be on that country.
2. If a member of the OPEC committee violates the set quota (Production/export of more oil than permitted by the quota) the following consequences will be applicable for all members:
a) An immediate suspension of the membership for a duration no less than 2 years.
i. The member country suspended from membership may however not be readmitted to the committee if they continue to violate the quotas previously set.
b) A fine of 3% of the country's GDP in relation to the previous fiscal year, payable to The OPEC Fund for International Development.
3. The quotas of production and export of the countries shall be monitored by the International Energy Agency.
Hopefully the implementation of these Quotas will have a positive effect for Member States and the global community.